Source · Select Committees · Treasury Committee
First Report - The digital pound: still a solution in search of a problem?
Treasury Committee
HC 215
Published 2 December 2023
Recommendations
5
Accepted
Para 46
Prohibit Government and Bank of England from using digital pound data beyond law enforcement.
Recommendation
We recommend that any primary legislation used to introduce a digital pound does not allow the Government or Bank of England to use the data from a digital pound for any purposes beyond those already permitted for law enforcement.
Government Response Summary
The government has committed to guaranteeing users' privacy in primary legislation if a digital pound were launched, confirming neither the Government nor the Bank would have access to personal data beyond existing law enforcement permissions.
HM Treasury
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8
Accepted
Para 52
Digital pound must support financial inclusion, exploring offline payment options for accessibility.
Recommendation
It would be important to support financial inclusion to the greatest possible extent through a digital pound were it to be launched, including by exploring the option of offline payments to ensure accessibility by users with limited or unreliable internet …
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Government Response Summary
The government has accepted the recommendation, establishing a working group to report on offline payments by year-end, and committing to conduct experiments exploring accessibility for digitally excluded users.
HM Treasury
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10
Accepted
Para 58
Unclear whether digital pound benefits outweigh significant privacy and financial stability risks.
Recommendation
This report has set out some of the benefits and risks from a digital pound. While there are some potential benefits, their extent is unclear and there are significant risks and challenges to be worked through, particularly in relation to …
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Government Response Summary
The government accepts the recommendation, stating that the committee's message aligns with HM Treasury and the Bank's approach to the next design phase, which will deepen understanding and build an evidence base for a decision later this decade.
HM Treasury
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12
Accepted
Mandate a neutral and rigorous cost-benefit analysis for any digital pound launch decision.
Recommendation
Building the infrastructure needed for a digital pound would also likely be very expensive, and the eventual decision on whether to launch a digital pound will need to be subject to a rigorous cost-benefit analysis. The Bank of England and …
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Government Response Summary
The government agrees that a balanced, transparent, and rigorous approach, from a neutral stance, is required for the cost-benefit analysis of a digital pound, which will cover economic, societal, and financial implications.
HM Treasury
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Conclusions (1)
4
Conclusion
Accepted
Para 45
Strong privacy safeguards would be vital were a digital pound to be introduced. Although the Bank of England and Government state that it is not their intention to be able to access users’ data, it is conceivable that they may in future be tempted to try to make use of …
Government Response Summary
The government has committed to guaranteeing users' privacy in primary legislation if a digital pound is launched, aligning with the report's emphasis on strong privacy safeguards and confirming neither the Government nor the Bank would access personal data.